Question

Demand curve is a rectangular hyperbola in case of
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Answer 1

Answer:

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Explanation:

Rectangular hyperbola is a curve under which all rectangular areas are equal. When the elasticity of demand is equal to unity (ed = 1) at all points of demand curve, then the demand curve is rectangular hyperbola. It is a downward sloping curve as given in figure below.

Answer 2

Answer:

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When the demand curve is a rectangular hyperbola, it represents unitary elastic demand.

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